Record labels primarily make money through multiple revenue streams in today's music industry. I'll break down the main ways labels generate their income.

Music Sales and Streaming Revenue Record labels earn a significant portion of their income from digital and physical music sales. When consumers purchase digital downloads or stream songs, labels receive a percentage of that revenue. For streaming, they typically get 50-80% of the royalties generated, while the artist receives the remaining share.

Music Publishing Rights Labels often own or co-own the publishing rights to songs, allowing them to earn money whenever these songs are: - Played on radio stations - Used in commercials - Featured in movies or TV shows - Covered by other artists - Performed live - Used in video games

360 Deals Modern record labels commonly use "360 deals" which allow them to earn from multiple aspects of an artist's career: - Tour revenues - Merchandise sales - Brand partnerships - Social media earnings - Public appearances - Sponsorship deals

Sync Licensing Labels make substantial income by licensing music for: - Television shows - Films - Advertisements - Video games - Social media content

Music Distribution Labels earn money by distributing music through various channels: - Digital platforms (Spotify, Apple Music, etc.) - Physical retailers - International markets - Direct-to-consumer sales

Artist Development and Management Some labels provide artist management services and earn additional revenue through: - Commission on bookings - Marketing services - Production services - Studio time rentals - Video production

Catalog Exploitation Labels continue generating revenue from their back catalog by: - Reissuing classic albums - Creating compilation albums - Licensing older songs for new uses - Remastering vintage recordings - Creating special editions

I want to note that revenue shares and exact percentages vary significantly between different record labels and artist contracts. The music industry continues to evolve, with streaming becoming increasingly dominant in revenue generation for record labels.

In recent years, labels have also started exploring new revenue streams through: - NFTs and digital collectibles - Virtual concerts - Social media monetization - Direct-to-fan platforms - Exclusive content subscriptions

This diversification helps labels maintain profitability in an ever-changing music industry landscape while adapting to new technologies and consumer preferences.

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